Table of Contents Introduction 2 Theories of Business Ethics 3 Egoism/Enlightened/Self-Interest 3 Utilitarianism 3 Deontology 4 Care Ethics 4 Virtue Ethics 4 Ethics and Human Resource Management (HRM) 4 Internal and External Drivers for Ethical Management 5 Challenges to Corporate Social Responsibility Development 6 Conclusion 9 References 9 Introduction Corporate and Society share a primary role in the development of a region or a country. During the 1950s, a strong discussion was made to the management policy and its decision-making process. Large corporates came together across the nations to encourage principles of social democracy and social movement activism. Strategies are developed keeping in mind to overthrow the policies and ideologies of the capitalist colonialism and Governmental influence (Benn, Dunphy, and Griffiths, 2014). Keeping this in mind, these corporate bodies together planned for a forum where they can secure the rights provided by the government and simultaneously tried to become the voice of the people that could not reach to the government level. In the 1960s they formed an activist group that would help in driving the aim and objectives laid by the group of corporates and works towards the betterment of the society and of the surroundings they are responsible for (Leipziger, 2015). This group work beyond the business interests and their working strategies do not limit to any operation performances. Cooperate Social Responsibility do have a broad scope of activities and strategies that work towards the development process (Ferrell, and Fraedrich, 2015). It is a broad concept that refers to the self-regulation body that gets integrated into a business model. This team is responsible for ensuring all the activities carried out under them are well-complaint with the policies and regulations. (Dawkins, 2005). They are guided by some of the most effective business monitors and work with the spirit of law. Despite having such strong concept and transparency in the activities, a lot of issues are there which does not allow the development of the principle of the Cooperate Social Responsibility (Asif, Searcy, Zutshi, and Fisscher, 2013). Many debates and arguments have risen regarding this, and it's still continuing. The current discussions will highlight some of the significant challenges in the development of the Corporate Social Responsibility. Before going deep into the discussion, some of the ethical concerns of the Human Resource Management was also discussed along with putting lights on the internal and external drivers for Ethical Management.( Boström 2012). Theories of Business Ethics Equality and ensuring fundamental rights are the key component for making a business successful. Each organisation runs on some of the basic guidelines that form a part of the ethics (Brammer, Jackson, G and Matten, 2012). Business ethics helps in the process of everyday decision-making. It also governs the behaviour the individuals should have within the organisation as well as in the society (Crane, and Matten, 2016). Apart from decision making, following the ethics helps in maintaining a proper balance in all the aspects of a professional as well as personal life. To simplify everything, ethical theories were developed to act as guidelines whenever required, and those are, Egoism/Enlightened/Self-Interest This principle primarily relates to self-interests or the needs of an individual. An individual's desire decides the right and wrong among two acts or activities. The fundamental principle revolves between what one wants to fulfil his desires and the same reflects in his actions (Lee, and Saen, 2012). Even the decision making is highly influenced by his wants but should abide by the law. In business point of view, self-interest helps in adding to the profit and encouraging decisions making in for of the organisation. To some extent this concept is helpful, yet the same could create negative impact if mot carried out in a limit. (Hopkins et al., 2012). Utilitarianism Utilitarianism theory is influenced by the principle of greatest happiness. Its principle works towards the benefits of a larger number of people and their interest so that it would help maximising the happiness of a huge mass (Du, Bhattacharya, and Sen, 2010). Decision-making process under this concept involves the act that will assist in minimising the pain or troubles of many. Positivity is high in this theory and also provide the way to deals with the negativity or elements affecting the happiness of people. (Moon, 2014). Deontology It primarily based on the rational duties involved for an individual or an organisation. It guides that a person should perform his duty he is responsible for, and that should be for fulfilling the responsibilities or role he is accountable for (Juščius, and Snieška, 2015). A well-recognised duty was featured in this theory and the same need to follow effectively. Again each duty will be holding a logical reason behind it. Care Ethics Relations plays a vital role in an organisation, and the same is taken care by the Care Ethics (Brammer, Jackson, G and Matten, 2012). This theory ensures that all the activities going on should care about the individuals and the stakeholders involved along with nourishing the relationships between them. It offers support to the needy and cares for the vulnerable. Virtue Ethics Virtue Ethics is the ancient theory of ethics that promotes the cultural concept of deciding bad or good acts. It encourages cultural traits like justice, patience, etc. that would help in flourishing the lives of people (De Bakker, 2016). Habits play a vital role in this theory and differences in the traditions defines variation in the moralities. Ethics and Human Resource Management (HRM) Human Resource Management is responsible for managing people effectively in an organisation to achieve the organisational objectives and goals. It also prioritises individual performance and contribution towards the organisational as well as self-development. (Smith et al., 2014). Ethics helps in guiding the morality or business goals of an organisation (Brammer, Jackson, G and Matten, 2012). It involves principles and guidelines that ensure all the activities are going on the right way in a correct manner. Ethics forms the building blocks of trust between two stakeholders or entities. While considering the Human Resource Management, Ethics supports in making it successful in all aspects of professionalism and business growths. Human Resource Management primarily deals with the issues within and across the organisation. It also extended its influence to the society as well as adjacent environment too (Huybrechts, and Nicholls, 2012). Maintaining organisational and social balance is the prime objective of the Human Resource Management team, but simultaneously it is expected that the same should be doing in the most ethical manner (Asif, Searcy, Zutshi, and Fisscher, 2013). With time and complexity of organisational strategies and policies, a lot of issues are rising in the business ethics that has become a big challenge for the company, the employee, the stakeholders and eventually to the society/community (Hilson, 2012). Issues on within and outside organisational relationships are growing to a great extent. These issues do not influence at the organisation level only; rather it also creates the great impact on the social level as well. Internal and External Drivers for Ethical Management A lot of factors influenced the operations of a business and based on its type; it could be categories into internal or external drivers (Benn, Dunphy, and Griffiths, 2014). Those influences could be direct or indirect, yet plays a vital role in the business growth and development. Below figure provides a diagrammatic presentation of all the factors that drives the business. Figure 1. Driving forces Factors present within the organisation that influences the business is known as internal factors and those includes, employers. Employees, etc. On the other hand, those who are not involved within the firm but have a significant impact on the business are known as external factors which include customers (Baur, and Schmitz, 2012). The government, suppliers, competitors, etc. Stakeholders can be involved in either internal or external factors, depending on their roles and type or services they provide to the company. Challenges to Corporate Social Responsibility Development With time, the concept of Corporate Social Responsibility has changed manifolds. Being a part of its development, much of the focus are put into enhancing the ethical standards to maintain a balance in addressing issues on environmental. Social and economic concerns (Zadek, Evans, and Pruzan, 2013). Many companies are looking forward to their corporate governance to take an active role in addressing all the legal and ethical concerns and also to build a healthy relationship (Chkanikova, and Mont, 2015). As a part of streamlining the entire structure of the corporate social responsibility, various guidelines and principles are added to different components of the corporate social responsibility. Those areas include heath, human rights, environment, anti-corruption, labour standards and economic responsibility (Grant, 2016). A 4-dimensional approach is developed for the corporate social responsibility to establish a clear, coherent structure that would help in identifying, understanding, analysing, integrating and coming up with solutions for the various issue (Asif, Searcy, Zutshi, and Fisscher, 2013). Below figure provides a graphic presentation of those areas and the guidelines associated with it. In spite of having well-defined structure and strategy, there are a lot of challenges been faced with the corporate social responsibility that is negatively impacting its growth and development. Below are some of the common problems encountered by the corporate social responsibility that hinders its development. • Lack of Awareness and Doubt – Most of the people are unaware of the concept or reason behind the corporate social responsibility. For them, it is regarded as a part of tax saving for the organisation, and they feel it hardly matters to them (Kolk, and Van Tulder, 2010). This creates the lack of encouragement at the individual level to take any step for the developmental process of the corporate social responsibility. (Bowen, 2013). • Lack of Global Standards – Most of the firms does not follow the global standards for corporate social responsibility that eventually limits their efforts in the developmental work of the corporate social responsibility (Vasilescu, Barna, Epure, and Baicu, 2010). Also, they are ignorant of how to make the role of the corporate social responsibility efficient in the overall growth and devotement of the corporate and the society. • Liabilities – Some companies do not encourage such kind of activities giving the reasons of their on-holding liabilities and overheads (Baur, and Schmitz, 2012). This impact the overall developmental process growth and each firm is having some value in the process. • Fear of the known and unknown – Some firms are unknown about the fast and figures involved in the global corporate social responsibility. The reason behind that is their fear of unsafety (Vasilescu, Barna, Epure, and Baicu, 2010). They are unaware of what do, where to do, how to do, what is its significance, how it will add value, etc. • Uncertainty – Some firms are uncertain of the services and roles of the corporate social responsibility (Murray, Haynes, and Hudson, 2010). The Even simple concept behind this is ignorant to them, and they do not find it related to anything. They are completely uncertain of all the facts and figures. Conclusion Lack of scope of opportunities at the organisational will affect the fundamental rights laid by the constitution (Schaper, 2016). It would lead to inequalities in the economy level in the society. 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